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CCCI seeks steps against ‘overvaluation’ of dollar

  • Staff Correspondent
  • 29 April, 2022 12:00 AM
  • Print news

CHATTOGRAM: Chittagong Chamber of Commerce and Industry (CCCI) President Mahbubul Alam urged Finance Minister AHM Mustafa Kamal to take steps to control the rising value of dollar against taka.

The president made the urge in a letter on Wednesday.

Mahbubul Alam in the letter said that the economy of Bangladesh is now returning to the state that existed before the coronavirus pandemic. He said this economic recovery has been possible due to various steps taken by the government.

Terming it as a positive sign, he said the recent rise in the value of the US dollar has created scope to leave negative impacts on the economy.

The chamber president informed that Bangladesh Bank set the price at Tk 86.20 per dollar on March 23. Since then, the exchange rate of the dollar has been rising.

In the case of scheduled banks, each bank is selling dollars at a different rate. Although, the exchange rate at different banks ranges from Tk 88 to Tk 89 now, dollar is being sold at over Tk 95 at open market, he said.

Consequently, the prices of imported industrial raw materials and consumer goods are increasing despite the remittances and export earnings are growing significantly, said Mahbubul Alam.

“Therefore, it is important to control this high value of the dollar in order to continue the economy recovery,” he observed.

“If it is possible to prevent the devaluation of money by taking effective measures including increasing the supply of dollars to the scheduled banks, the inflation will come under control,” the CCCI chief added.

The economy will also move towards holding a stronger position with an increase in industrial production and exports, he added.

Mahbubul Alam also requested the Bangladesh Bank to provide guidance for implementing urgent measures to control the excess value of the dollar against the taka.The business leader hoped that the positive steps of the Finance Minister would play an effective role in maintaining balance through controlling the overvaluation of dollar considering the wider economic context of the country.